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Trends Transforming The Hospitality Outlook For 2022

The hospitality industry is tremendously competitive. It’s crucial that all businesses operating in this industry keep up with the latest trends. A blink could see several organizations lugging behind. Moreover, maintaining pace with the ever-growing industry is one of the numerous ways owners can ensure their businesses deliver exceptional customer experience.

Here are the ten trends that are significantly impacting the hospitality sector.

Appealing to Next-generation travelers

This year, we have witnessed an increased interest in millennial travel trends. Historically, the hospitality industry has always treated leisure and business travelers as two different entities. However, millennials who are anticipated to account for almost all business travel spending by the year 2022 are expected to extend business trips into leisure.

The adventure-seeking millennials have steered the industry, making it multiply valuing cultural experiences over material possessions. Generation Z (those individuals born between 1995 and 2000) are on millennials heels when it comes to the subject for changes in travel. Both generations have similar desires. However, there is one key difference between the two generations. The desire for security is what separates the two. Generation Z grew up during the great recession. This makes them be more fiscally and pragmatically responsible when it comes to traveling.

Hotels can manage to attract generations Y and Z in 2022. This can be achieved by providing off-the-beaten-path opportunities and activities. This way, they will interact with locals and still incorporate discounts and incentives that appeal to their budgets. Both Generations favor communal organic and dining tables. They prefer locally sourced menus compared to fancy ones. Also, the two are consistently connected to technology, which influences how they pay and shop for travel. This means that conveniences like chatbots and mobile check-ins that offer instant replies to questions are increasingly crucial.

Integration over isolation

In past years, sales, revenue strategies, and marketing have operated in isolation. Each department worked with its technology solutions, goals, and client databases. Their efforts were not perfectly aligned, as they all used diverse information sets to establish marketing strategies and make crucial pricing decisions. The result of all these was lower profitability, missed revenue opportunities, and less effective direct marketing.

Throughout 2022, a convergence of sales, revenue strategy, and marketing will be witnessed. They will all become one reliable revenue-generation team. It’s anticipated that they will work in coordination to attract, retain, and engage clients. Integrated innovation solutions, specifically those using Artificial Intelligence to evaluate Big Data will assist elevate hotel profitability. Profits will be achieved by enabling cross-functional alignment and generating one compact client profile. Hotels need to have a profile that accounts for detailed data of a client. It should contain the reason for travel, past preferences, length of stay, and the clients booking behavior.

Complete Revenue Optimization

This is the other trend that will be applicable in 2022. Total revenue optimization is expected to take a full lifetime value of clients into account. Hotels have already started to apply revenue optimization plans. They are focused on going beyond the rooms and include conference spaces and other ancillary revenue sources.

Additionally, the hospitality industry is becoming strategic when it comes to group bookings. New techniques are expected to emerge to allow sales to accurately and quickly assess group business. Systems will immediately be generating optimized pricing, permitting the hotels to close several deals while still maximizing meetings and groups’ total revenue.

Social media

In the ever-changing world of digital advertising and marketing, the hospitality sector can’t afford to ignore Facebook posts, tweets, and Instagram pictures. These tech giants are the ones that identify the social media domain. Millennials are active members on social media. At 91%, Millennials trust online reviews more than they could a personal recommendation.

In the coming year, possessing an active social media account and upholding reputation management will be crucial for the hospitality industry. About 43% of business guests and 49% of leisure guests usually share the opinions and reviews about their most recent hotel experiences on social media platforms. The hospitality industry can engage with clients on social media. This way, they can obtain clients post-trip feedback and preference information.

Also, valuable and free marketing in the form of user-generated content will consistently grow. Various hotels have already started to create Instagram worthy scenes of their amenities to lure clients.

Sharing Economy

The disruption that was caused by the rise of the sharing economy has impacted the behavior of travelers. Clients appreciate services like Airbnb for their personalized authenticity, approach, and uniqueness. About 68% of travelers haven’t recognized the difference between what hoteliers have done for them. Brands interested in competing efficiently with different accommodation sites are updating their rooms décor with attractive local touches. They have also transformed lobbies into comfortable, relaxing settings that quench the desires of today’s travelers for blending socializing/co-working spaces.

The coming year, all hotel managers will be capturing more market information and leveraging analytics. This will be necessary for adequately comprehending pricing, market penetration, and all the dynamics involving the industry.


This will be a vital factor in successful brand management of the hospitality industry. Durability is among the most significant global problems facing the world at the moment. The hospitality industry will have no choice but to advance their sustainability to establish trust with the clients.

Clients have been on the frontline to do their part when it comes to sustainability. Most have already embraced reusing bathroom towels and make fewer requests for frequent bed changes. The industry, on the other hand, will be rewarded through energy-saving schemes and tax reduction policies. Hotels will be required to go green, considering points of concern, which include waste reduction, carbon emission, saving water, and decreasing plastic usage.

Internet of Things

This is one of the most massive emerging technologies in the Hospitality sector. The technology will enable the staff to manage and track down valuable inventory within the facility. The smart Hotel innovation will also allow the staff and clients to control energy consumption better and also maintain sustainability and pro-environment initiatives.

IoT also has the potential to see hotel revenues increase. The technology has triggered many hotels to invest in mobile engagement. They expect that all clients will be using the gadget for payment, room selection, and also accessing the keys for amenities like spas and pools. Additionally, IoT can send clients real-time offers through Smartphones. This will encourage more sales.

Virtual Reality

This technology is being implemented by the hospitality industry to blend the physical and digital worlds to establish an immersive platform for clients. Virtual reality is already widespread across many industries. In the hospitality sector, it will entertain and make clients experience more exciting. Over eight most prominent hotels have already implemented the technology. The trend is expected to be borrowed by other hotels across the globe in the coming year.

Facial Recognition

This is a common technology applied in airports. The technology has also attracted hoteliers. It assists in accelerating check-ins, which is particularly embraced by most business travelers. They don’t like delays. However, this technology has its limitations when it comes to information regulations. Before integrating the technology, hoteliers will have to pay attention to information data protection laws in their regions of operation.


This is a significant trend being applied across many industries. The hospitality industry is no different. It will have to apply the technology in their services. The rising issues of big data have driven personalization. A growing number of clients wish to be treated as individuals, not as anonymous clients.

Personalization can be employed in numerous ways. In the hospitality industry, for instance, clients that return can be given similar services they were handed the last time they visited. Also, they can personally be saluted by a member of the staff once they arrive. Staff can acquire a client’s details using booking data and GPS technology. Moreover, with smart devices, hotel clients should be allowed to use personal devices and accounts to log in to the hotel’s entertainment platforms.

Smart hotels

A smart hotel is one that uses internet-enabled gadgets. These devices should be capable of sending information to another device. Stylish hotels should allow clients to control air conditioning or heating from a central device. They should also enable automatic adjustment of brightness on bulbs, command speakers, and control the temperatures of the radiator on one device.

Hospitality Industry Stats and Growth Projections in 2022

1. About 54% of the revenue that the hospitality industry generated in the last 12 months was from discounts and specials that hotels posted online.

2. The industry has experienced increased job satisfaction, thereby increasing revenue. Today, hotels are pocketing more than $15 per room. Five years ago, they were making less than this.

3. About 60 percent of the online reviews that regard the hospitality industry are placed on TripAdvisor.

4. The internet influences over 1 billion restaurant visits. This is through reviews and advertising.

5. One additional Facebook like is the equivalent to more than twenty organic visits in the hospitality industry.

6. About 78 percent of all hospitality industry companies use social media to better their client satisfaction and engagement.

7. More than 700,000 resorts and hotels are distributed across the globe.

8. About 70 percent of Americans use reviews posted online to book for hotel services. However, about 32percent of them leave reviews for the next visitors.

9. About 30 percent of clients utilize their mobile phones to pay for hospitality services. The majority of mobile payments take place in restaurants.

10. About 40% of the bookings that were made in the hospitality industry transpired online in the year 2013.

The year 2022 is set to be action-packed for the hospitality industry. It will be filled with new changes and challenges. Comprehending and embracing the trends that will steadily transform the sector will significantly improve client experience. Also, the trends will enhance the hotel industry’s reputation and optimize revenue.

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